1. Next Generation Workforce, CEWD and Succession Planning
March 2016

2. Agenda Workforce Challenges Overview CEWD Discussion
Succession Planning
NRECA Next Generation Workforce Goal

3. Global Talent Shortage
58% of global CEOs concerned about availability of talent
Over next decade, ~52% of industry has potential to leave
Not enough skilled workers to:
Build new infrastructure
Maintain and repair equipment
Operate facilities and new technologies
14,400 co‐op / PPD jobs to be filled in the next 5 years

4. National Co-op Retirements
3,496
Source: NRECA Data Warehouse (Jan 2016)

5. National Co-op New Hires
2015 Hiring Percentages
Gen Z (Ages ): %
Gen Y (Ages 20 – 35): %
(Millennials)
Gen X (Ages ): %
Baby Boomers (Ages ): 13%

6. Retirement Eligible Employees
Missouri Co-ops
Retirement Eligible Employees
Within Next 5 Years

7. Missouri Co-op Workforce Statistics
** All data are estimates based on NRECA data for distribution system employees
2014 4, %
2015 4, %
Source: NRECA data for distribution system employees as of 01/2016
© NRECA, all rights reserved.  May not be copied, reprinted, published, translated, hosted or otherwise distributed by any means without explicit permission.

8. Shrinking Rural Workforce
White areas are urban counties
Compiled from Bureau of Labor Statistics (BLS) Data

9. Changing Demographics
From 2010 – 2035:
The Non-Hispanic White Majority will drop from 65.3% to 54.1 %
The Hispanic population will nearly double from 51 million (16%) to 98 million (25%)
The Asian population will grow from 15.7 million (5.1%) to 28.7 million (7.4%)

10. Generation Considerations
Pulled from NASA’s Generation Y Perspectives presentation

11. Next Generation Workforce Challenges
Rural
Electric Utility
Co-op
Three Major Challenges:
Attracting qualified employees from a smaller pipeline of candidates at the pace needed
Retaining our new generation of co-op employees
Loss of knowledge through retirements and attrition
How do we leverage the positive attributes of these
three co-op characteristics to solve the challenges identified above?

12. Succession Succession Planning Development Future Potential Plans
Mentoring
Performance
Strategy
Management
Succession
Plans
NineBox
Future
Talent
Leadership
Development
Mentor
Assignments
Stretch
Experience
Potential
Planning
Learning
Agility

13. Agenda for Today’s Succession Planning Discussion
What I have skipped:
What is succession planning and why is it important?
What are the keys to effective succession management?
How to gain executive buy-in for succession planning.
What I plan to discuss:
A practical approach to succession planning for an organization of 25 employees.
Caring – Succession planning is about caring … caring for your people, caring for your organization and caring for your members.
Reality check: Most companies that have well defined formal succession plans are larger (all about the numbers);
Most co-ops will have more of a challenge due to limited staff size, location, budget

14. 5 Practical Steps + Communication
ID Key Positions
Assess Available Talent
Create Readiness Chart
Document Bench Strength
Create Development Plans
Communication

15. ID Key Positions CEO (Stan) EA (Jane) Operations Director (Steve)
Member Services (Susan)
Engineering (Mary)
Eng 1 (Donald)
Eng 2 (Stanley)
Eng 3 (Cindy)
Eng 4 (Norman)
HR (Adam)
Finance (Brian)
Accounting (Cindy)
Billing (Jake)

16. ID Key Positions
Key Positions

17. Assess Available Talent for Key Positions
Key Position Title: Position Vulnerability:
Incumbent Name: (Open in < 1yr, 1 – 3 yrs, 3+ yrs)
Cooperative.com HR Community: Succession Management Toolkit

18. Assess Available Talent for Key Positions
Potential
Performance

19. Create Readiness Chart
Key Position Title: Position Vulnerability:
Incumbent Name: (Open in < 1yr, 1 – 3 yrs, 3+ yrs)
Dale Carnegie: Succession Planning for You and Your Managers

20. Document Bench Strength
CEO (Stan)
EA (Jane)
Operations Director (Steve)
Member Services (Susan)
Engineering (Mary)
Eng 1 (Donald)
Eng 2 (Stanley)
Eng 3 (Cindy)
Eng 4 (Norman)
HR (Adam)
Finance (Brian)
Accounting (Cindy)
Billing (Jake)
Bench Strength (within 1 year)
0 Successors
1 Successor
2 or More Successors

21. Create Development Plans
Development Plans for All Employees
Overall performance summary
Key strengths
Development Needs
Development Actions
On The Job
Special Assignment
Training

22. Succession Planning Communication
Balance transparency with discretion
Succession planning deals with sensitive issues.
Take time to assess who needs to know what
There will always be a degree of subjectivity and fluidity in your analysis of potential successors. Which types of information can and should be made public, shared internally or treated as highly confidential?
Share your formal process and key criteria for choosing successors Being able to justify your reasons builds staff trust and engages your top performers in a clear development path to success.

24. CEWD Mission Build the alliances, processes, and tools to develop tomorrow’s energy workforce
Industry Solutions – Regional Implementation
Career Awareness
Education
Workforce Planning and Metrics
Structure and Support
First partnership between utilities and their associations – EEI, AGA, NEI, APPA and NRECA to focus solely on workforce issues
Incorporated as a non-profit in March 2006
Utilities, associations and supplemental labor contractors join as members
Members partner with educational institutions, workforce systems, and unions to create mutually beneficial employment solutions
More than 112 members from large IOU’s to smaller cooperatives and municipalities that represent about 90% of employees in Electric and Natural Gas Utilities
CEWD collects national workforce data, develops industry workforce solutions and assists members and their state consortia in regional implementation
CEWD focuses on talent pipeline development for Key Jobs that require unique skill sets and have suffered from retirements and attrition over the last decade: line workers, power plant operators, technicians and engineers
CEWD’s strategic plan is based on four pillars: Career Awareness, Education, Workforce Planning and Structure and Support

25. CEWD members in more than 30 US states also participate in state energy workforce consortia
Consortia bring together energy companies, education partners, workforce systems and relevant governmental agencies in the state to tailor energy workforce solutions.
A key benefit is nationwide learning and access to best practices. In this way, CEWD is able to provide its members with a “smart grid” of talent development expertise
It’s all about collaboration, learning and leveraging

26. Essential Elements of Workforce Planning
Organized Workforce Planning Structure and Support
Strategic Workforce Priorities and Implications
Workforce Risk Analysis
Map of Current and Future Workforce
Strategic Workforce Analysis
Short and Long Term Talent Requirements
BUSINESS PLANNING
WORKFORCE ANALYTICS
Link Workforce
Needs to Corporate Business Strategies
Forecast Talent Needs
Cross
Functional Collaboration
Talent Pipeline Development Effectiveness
Internal Employee Development Effectiveness
Feedback for Continuous Improvement
Short and Long Term External Talent Pipeline Development
Internal Employee Development
Knowledge Capture and Retention
EXECUTION & METRICS
WORKFORCE DEVELOPMENT
Workforce Planning:
A national template for Strategic Workforce Planning with tools, templates, best practices
The Gaps in the Energy Workforce Survey for the electric and natural gas utility industry.
State by State Demand Reports on utility employment and forecasted demand
Strategic Planning Tools and Templates
Contractor Demand Analysis Toolkit
Measure Results
Build Internal and External Talent Pipeline

27. Career Awareness
A National Brand, Get Into Energy, that is customizable for companies and consortia and an accompanying website:
Branding material, toolkits, best practices available for each targeted demographic
Coordinated Careers in Energy week activities through State Consortia
Get Into Energy Jobs and Troops to Energy Job microsite: A searchable database of real-time job vacancy announcements from all CEWD member utility websites which is accessible to job seekers.

28. Troops to Energy Jobs Website
Step by step Roadmap for Veterans
Virtual Coach at any point in process
Jobs Microsite for all CEWD member company positions with exclusive occupation translation
Registration site
Specialized TEJ website for veterans with roadmap for entering utility jobs.

29. NRECA Next Generation Workforce Goal

30. Next Generation Workforce Goal
Enable cooperatives to attract and retain the best, brightest and best-matched talent for today and the future.

31. National Mentoring Program
The purpose of this Mentoring Program is to help co-op employees:
Build a professional network across the co-op system,
Succeed in their new roles, and
Decrease their learning curve
Approach:
Build
Jan – Mar 2015: Rebuilt program based on lessons learned
Test
Mar – Aug 2015: Conducted successful pilot with 23 co-ops
Oct 2015: Launched full program with 43 participants
2016 and beyond: Build on program
Launch
Measure
Continuous: Anecdotal and survey data
2016 Goal: 120+ participants

32. Pilot Results Program Materials Relationships
100% of participants would refer a friend!

33. Program Status and Next Steps
Our current program is represented by:
Recruiting for new Mentors (Present – October 2016)
Recruiting for new Mentees (INTERACT 2016, CEO Communications, HR Communications)
2016 cycle launched in October 2016
Seeking Referrals for BA Mentors!
Mentors
Mentees
# of Participants 21 22
States 13 14
Regions 8
Distribution 7 15
G&T 9 4
Statewide 3
Service

34. Play video
Bring Getting Started Guide

35. Mission Vision Program Overview
To provide veterans, service members and military spouses, with the opportunity to continue their mission of serving America’s suburban and rural communities.
Vision
To create a coalition of cooperatives with the shared goal of empowering military professionals in their local communities.

36. Veterans Share Cooperative Values
Our Opportunity
Co-op Jobs
14,400
1,000,000 Transitioning Troops
Solid Recruiting Pipeline
44% of Veterans from Rural Areas
Highly Skilled, Trainable, Diverse Population
Veterans Share Cooperative Values

37. Approach Build Test Launch Measure Short Term Goal: Co-op Engagement
May – Dec 2015: Build program concept, tools and relationships.
Test
Sept – Dec 2015+: Pilots underway with Exec Committee Members.
Launch
Jan 2016: Launched at CEO Conference; reinforced throughout the year at every possible venue.
Measure
2016 Goals:
100 Co-op Coalition Members
7 State Level Co-op Working Groups
2017+ Goals: Mature metrics as program grows
Short Term Goal: Co-op Engagement
Long Term Goal: Co-op Collaboration
Ultimate Goal: Veteran & Spouse Employment

38. Progress since Launch
1st Offer to Veteran as a Result of the Program (Employee starts June 2016).
Co-op Coalition Members
Association of Illinois EC directors unanimously adopted the “Serve our Co-ops; Serve our Country” member pledge.
6 individual co-op registrations; additional 20 CEOs with intent to join the coalition plus Illinois co-op registrations (27).
State Level Co-op Working Groups
Illinois Co-op Veteran Working Group Established.
Texas, Nebraska, Iowa, Indiana and possibly Georgia underway.

39. How to get Started

40. Thank you!